The law firms of Johnson & Perkinson and Potter Stewart Law Offices, P.C., counsel for a proposed class of Vermont consumers, and Microsoft Corp. jointly announced today that a settlement has been reached in a class action lawsuit alleging that Microsoft Corp. violated Vermont's consumer fraud act.

The settlement, which received preliminary approval on July 1, 2004 from the Superior Court for the County of Windham, Vermont, will make vouchers available to class members that may be used to buy any manufacturer's desktop, laptop and tablet computers; any software available for sale to the general public and used with those computer products; and specified peripheral devices for use with computers. The total amount of vouchers issued will depend on the number of class members who claims vouchers, and the maximum value of the vouchers that may be issued to class members will be $9.7 million.

Under the terms of the settlement agreement, Microsoft will provide one-half of the difference between $9.7 million and the value of vouchers issued to class members to Vermont’s public schools in the form of vouchers that may be used by the schools to purchase a broad range of hardware products, Microsoft® and non-Microsoft software, and professional development services. The vouchers will be made available to public schools in which 50 percent or more of the students are eligible for reduced-fee or free meals under the National School Lunch Program or distributed as determined by the judge presiding over the settlement.